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Quality Products and Recurring Revenue: Variations on a Theme

August 19, 2015

From focus, to fundamentals, to financials:

I have two quotes up on my wall: One is mine, “Quality and consistency creates the addiction.” Zane Lowe Talks […] (Jem Aswad; Billboard)

Apple is perceived as a hit-driven business. That’s not as attractive as a business that collects rent. Of course, the logic has not sunk in that having 1 billion loyal customers is a recurring revenue business. Devices are a recurring revenue model too. Not yet appreciated as perception lags from consumer electronics era. Horace Dediu, on Twitter. (First, second, third Tweet.)

Sprint unveiled Monday a new leasing plan called iPhone Forever that starts at $22 a month for an iPhone, in addition to the monthly service fee. Customers can upgrade to the latest iPhone each year as soon as it is available. That is an improvement over Sprint’s current leasing offer, which only lets customers upgrade to a new iPhone every two years. Sprint to Abandon Two-Year Contracts (Ryan Knutson, WSJ)

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Filed Under: Apple, Contracts & Subsidies, Product Development, Smartphones, Sprint

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